Pertamina doubles LNG purchase volume from Cheniere

By Bernard Loebs

State-owned oil and gas firm PT Pertamina has doubled the LNG purchase volume from US firm Cheniere Energy Inc?s subsidiary Corpus Christi Liquefaction LLC to 3 million tons per annum (mtpa).

?An agreement has been recently reached to increase the LNG import volume to 3 mtpa from 1.5 mtpa,? Salis S. Aprilian, President Director of PT Badak NGL, a Pertamina subsidiary which operates the Bontang LNG plant in East Kalimantan, told Petromindo.com. He did not provide further details.

Pertamina signed an LNG sale and purchase agreement with Corpus Christi in July of last year, under which the company would purchase approximately 0.76 mtpa of LNG upon the commencement of operations of Train 2 of the LNG export facility being developed near Corpus Christi, Texas. This is an addition to the previous LNG sale and purchase agreement of 0.76 mtpa, increasing the total import volume to 1.52 mtpa.

The Corpus Christi Liquefaction Project is being designed and permitted for up to three trains, with aggregate design production capacity of 13.5 mtpa of LNG.

Under the SPA, Pertamina will purchase LNG on a free on board (FOB) basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component. LNG will be loaded onto Pertamina's vessels. The SPA has a term of twenty years commencing upon the date of first commercial delivery of the second train of the Corpus Christi Liquefaction Project, with an extension option of up to ten years. Deliveries from Train 2 are expected to occur in 2019.

Editing by Reiner Simanjuntak